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Oil & Gas

Biden halts approval of new LNG export projects

President Joe Biden has paused approvals of new liquefied natural gas (LNG) projects due to export to countries without free trade agreements with the US.

Announcing the halt on Friday, the White House said analysis of the effects of new LNG export authorisations on the environment and US energy prices needed to be updated.

“During this period, we will take a hard look at the impacts of LNG exports on energy costs, America's energy security, and our environment,” Biden said.

“This pause on new LNG approvals sees the climate crisis for what it is - the existential threat of our time,” he added.

A review will be carried out by America’s Department of Energy, with this expected to delay decisions on new plants until after November’s presidential election.

Such a review was last carried out in 2018, when LNG exports from the country sat at 4 billion cubic feet per day.

Capacity has since tripled and continues to grow, with the US becoming the world’s leading LNG exporter last year.

“Today, we have an evolving understanding of the market need for LNG, the long-term supply of LNG, and the perilous impacts of methane on our planet,” the White House added.

“We also must adequately guard against risks to the health of our communities, especially frontline communities in the United States who disproportionately shoulder the burden of pollution from new export facilities.”

The news comes after environmental campaigners have pressed Biden to address the rapid growth of America’s LNG exports.

LNG itself is more harmful for the environment than piped gas, given the energy intensive process of liquefying and then transporting the product on ships.

Friday’s ban will not affect US shipments of the fuel to allied countries, however, the White House reassured, with exceptions set to be made for “unanticipated and immediate national security emergencies”.

UK gas prices slipped 1.6% to 66.38p per thermal unit on Friday.

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